VIETNAM CEMENT INDUSTRY

Over the past years, the global cement production has sharply increased from 1.38 billion tons in 2002 to 4.1 billion tons in 2017 (equivalent to 73.4% compared to the installed capacity). In 2017, the total cement installed capacity was estimated at over 6 billion tons, a slight increase over 2016. There have been currently about 160 countries producing cement in the world, in which, cement production in Asia has been leading the world, accounting for 80.2% of the global cement produced volume in 2016 with China taking the lead.

Vietnam cement market continues to have excess supply. In 2017, Vietnam Cement industry has had three new cement production lines with the installed capacity of x.x million tons per year coming into operation. Therefore, by the end of 2017, there were 83 cement production lines in the country with the total capacity of xx.x million tons. In Q1/2018, the number of produced cement was estimated about xx.xxx thousand tons. The quantity of exported cement and clinker in Q1/2018 reached x.xx million tons, sharply increasing over 2017. In general, Vietnam cement industry has been continuously oversupplied in the coming years, but the situation would be more complicated and would change by region.

Three groups of cement suppliers in Vietnam: Companies group belonging to VICEM (VICEM is 100% state enterprises with many subsidiaries and associated companies). The second group is foreign cement companies, including LafargeHolcim (Europe), Nghi Son (Japan), Chinfon (Indonesia), Thang Long (Indonesia) và Luks (Hong Kong)…Group of private companies having large-size in the locality, including Xuan Thanh, Cong Thanh and Vissai, besides that there are many small cement enterprises in the locality.

Competition within the industry along with large cement companies are jointly capturing the market, small cement enterprises are forced into bankruptcy or merger because they are not competitive enough. It is forecast that in the period 2016 – 2020, the increase in demand will be stable at 6-7%.

 

 

Abbreviations
Executive Summary
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
2. Industry overview
2.1 World cement industry
2.1.1 Production
2.1.2 Consumption
2.2 Vietnam cement industry
2.2.1 History of Vietnam cement industry
2.2.2 Definition and Classification
2.2.3 Basic production process
2.2.4 Scale and market share
2.2.5 Supply-Demand
2.2.6 Cement and clinker export
2.2.7 Price movement
2.3 SWOT analysis
2.4 Cement industry planning
2.5 Outlook and forecast
2.5.1 Driving forces of industry development
2.5.2 Driving forces of output industry development
3. Enterprise analysis
3.1 Profitability
3.2 Performance efficiency
3.3 Financial strength
3.4 Return on investment

Ha Tien 1 Cement Joint Stock Company
Vissai Ninh Binh Cement Corporation
Nghi Son Cement Company
VICEM Hoang Thach Cement Company
Bim Son Cement Joint Stock Company
VICEM But Son Cement Joint Stock Company
Thang Long Cement Joint Stock Company
VICEM Hoang Mai Cement Joint Stock Company
Quang Ninh Cement and Construction Joint Stock Company
Sai Son Cement Joint Stock Company

List of figures
Figure 1: GDP by current price and GDP per capita, 2013-Q1/2018
Figure 2: GDP growth rate by quarter, 2015- Q1/2018
Figure 3: VND/USD exchange rate, 2013-Q1/2018
Figure 4: Industrial production index of the manufacturing, 2012 – Q1/2018
Figure 5: State revenues, Q1/2018
Figure 6: Government expenditures, Q1/2018
Figure 7: The rate of development of social investment capital increasing at current prices, 2015 – 2018
Figure 8: The investment capital for society development by current prices for economic sectors, 2010 – 2016e
Figure 9: The investment capital for society development by current prices for economic sectors, 2010 – 2016e
Figure 10: FDI attraction by sector, Q1/2018
Figure 11: Cement production by region 2016e
Figure 12: Global Cement Production, 2011 – 2017e
Figure 13: Top largest cement producing countries, 2017e
Figure 14: Consumption structure of cement worldwide, 2016
Figure 15: Global Cement Consumption, 2010 – 2018e
Figure 16: Manufacturing enterprises allocation by region, 2016e
Figure 17: Cement supply – demand, 2011 – Q1/2018e
Figure 18: Average cement export price of Vietnam to some markets, Q1/2018e
Figure 19: Cement clinker exports, 2010 –Q1/2018e
Figure 20: Cement clinker exports, 1/2015 – 3/2018e
Figure 21: Export markets for cement and clinker, 2015 -Q1/2018e
Figure 22: Capacity of cement manufacturers for export in 2016
Figure 23: The enterprises export cement directly, Q1/2018e
Figure 24: Exporters of clinker directly, Q1/2018e
Figure 25: Sale price of cement at some cement companies, Q1/2018
Figure 26: Retail price of cement in the areas, Q1/2018
Figure 27: Cement price, 2012 – 2018e
Figure 28: Export price of cement and clinker, 6/2015 – 3/2018
Figure 29: Forecast for value of construction and infrastructure, 2010 – 2022f
Figure 30: Population growth, 2011 – 2017e
Figure 31: Net revenue growth, 2015 – 2016
Figure 32: Gross profit growth, 2015 – 2016
Figure 33: Total asset turnover, 2015 – 2016
Figure 34: Fixed asset turnover, 2015 – 2016
Figure 35: Inventory turnover, 2015 – 2016
Figure 36: Payment ratio, 2015 – 2016
Figure 37: Solvency, 2015 – 2016
Figure 38: Profit ratio, 2015 – 2016

List of tables
Table 1: Environmental Protection Tax applied since 1/2012
Table 2: Natural Resources Tax applied since 2/1/2014
Table 3: Import and Export Tariffs applied since 2016
Table 4: Cement production output of some countries, 2017
Table 5: World’s top largest cement exporting countries, 2016 – 2017e
Table 6: Top 10 cement enterprises with the highest revenue in 2016